SKM demands white paper on MSP and procurement system

The Samyukt Kisan Morcha (SKM) has demanded that the central government issue a white paper on crops' minimum support prices (MSP) and the procurement system. SKM alleged that farmers are forced to sell around 90% of their produce below the MSP.

In a statement, SKM demands Union Agriculture Minister Shivraj Singh Chouhan to stop misleading people and reveal the difference between MSP calculated using the A2+FL+50% and C2+50% formulas through a white paper.

“As far as paddy is concerned, the present MSP of ₹2,300 per quintal is 30% less than the rate based on the C2+50% calculation, which amounts to ₹3,012 per quintal. This means farmers are incurring a loss of ₹712 per quintal,” the statement read.

The A2+FL formula includes the costs incurred by farmers for crop cultivation and the value of family labour. In contrast, the C2 formula is more comprehensive, encompassing A2+FL costs along with the imputed rental value of owned land (or rent paid for leased-in land) and interest on fixed capital.

According to SKM, with the average paddy productivity in India estimated at 2,390 kg per hectare, a farmer cultivating one hectare of land loses ₹17,016 per crop. This results in inadequate income and widespread indebtedness. However, the NDA3 Government is not ready to accept the recommendation of MSP@C2+50% of the National Farmers Commission headed by Dr. MS Swaminathan.

SKM also criticized the Union Agriculture Minister's claim during the virtual review meeting on January 4, 2025, with the State Agricultural Ministers that “whatever wheat and rice comes, arrangements are made to buy it at MSP,” calling it factually incorrect. "In reality, less than 10% of the crops are procured as of now, and farmers are forced to sell the remaining 90% of their produce below the MSP @ A2+FL+50% declared by the government," SKM said.

The SKM rejected the recommendation in the Report of the Parliamentary Standing Committee on Agriculture, Animal Husbandry, and Food Processing (2024-25), chaired by Congress MP Charanjit Singh Channi, as it failed to recommend the C2+50% criterion. The committee recommended implementing a robust and legally binding MSP in the country.

The committee has also recommended introducing a scheme to waive off the debt of farmers and farm labourers in light of rising farmer debts and suicides linked to farm distress. Additionally, it proposed establishing a National Commission for Minimum Living Wages for Farm Labourers to provide long-overdue rights to farm workers, a move welcomed by SKM.